The current health crisis is devastating by itself but it has also touched off a financial crisis that will seriously damage our communities. It is important that we deal with these circumstances vigorously and in consideration of the monetary impact to us all.
San Marcos gets a large portion of its revenues from sales tax rebates, hotel occupancy taxes and property taxes. Sales tax inflows will be very significantly reduced with the outlet malls and many other businesses closed or seriously curtailed. This and a severe reduction in hotel occupancy tax collections will make a large shortfall of revenue a certainty.
Does our city have contingency plans to deal with this? And if not, is the city now preparing contingency plans based on our current conditions, and further plans that can be triggered if the crisis deepens more? It would be comforting to hear what plans there are for cutting expenses, even if it means a reduction of services, delaying projects or even canceling them. An example is the extraordinarily expensive new Public Services Center at $44 million. That project should immediately be put on hold and more reasonably priced options pursued by the city.
